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Poland is a leader in the production of Li-ion batteries.

Electric cars are becoming a common sight in Europe. Poland, a leader in the production of Li-ion batteries, is experiencing dynamic growth in the sector...

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14 Dec, 2023

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Electric cars, once seen as a distant vision of the future, are becoming an increasingly common sight on the roads. A priority within the economic recovery plan post-COVID-19, according to statements from EU institutions, is the development of zero-emission transportation. As a result of this approach, electromobility is rapidly growing in the European market. The sale of electric vehicles reached an impressive level of 2.3 million in 2021, marking a 64% increase compared to the previous year. Moreover, in 2022, the fleet of electric vehicles in Europe increased to 5.5 million.

The global shift towards zero-emission transportation is leading to an increasing demand for resources. Lithium-ion batteries are essential components of every electric vehicle, serving the purpose of storing electricity drawn from the grid. This energy, after being transformed by the electric motor, becomes mechanical energy, enabling the vehicle to move. Li-ion batteries constitute the most expensive part of electric vehicles, accounting for an average of 35-40% of the total vehicle value.

According to the ranking prepared by BNEF, Poland is a leader in the supply chain of
Li-ion batteries in Europe.

ChatGPT Development of this sector in the country is exceptionally dynamic and promises benefits not only economically but also environmentally. In 2017, the value of the lithium-ion battery sector in Poland was only one billion złoty, while in 2022, it has almost increased to 38 billion. That’s a staggering 38-fold increase in value in just 5 years.

Leading the market for Li-ion batteries in Poland is LG Energy Solutions, originating from South Korea. Its factory near Wrocław is the largest facility producing batteries for electric vehicles in Europe. Currently, the production is at 86 GWh, with plans to reach up to 200 GWh. The growing number of companies, such as GigafactoryX owned by Impact Clean Power Technology or Mercedes-Benz Manufacturing Poland, contributes to increasing Poland’s potential in the global market for electric vehicle batteries.

ChatGPT Currently available lithium-ion battery recycling technology allows the attainment of materials with a purity level reaching 98%. Such resources can be effectively utilized in the production of new battery packs. Poland is one of the leading countries globally in the production of traction batteries. However, it lacks the necessary natural resources for their production, exposing the country to a strict dependence on global market trends. The development of recycling facilities thus becomes an opportunity for the Polish economy to strengthen its dominant position in the battery industry, both in Europe and on a global scale, by securing production processes with recovered materials.

Currently, Poland enjoys the position of being the second-largest producer of Li-ion batteries in the world. However, maintaining this position in the face of intense competition will be a challenge.

ChatGPT The Polish Association of Alternative Fuels (PSPA) points out key areas that need strengthening for the continued success of the battery industry in the country. Firstly, access to raw materials, especially lithium, is crucial. This requires investment in both extraction and processing to make production independent of foreign suppliers. Another important aspect is the development of highly skilled personnel. Mass-scale battery production requires specialists with high competence. Educational organizations, companies, and the state must collaborate to create training programs to meet the growing demand. Finally, diversification of supply chains is extremely important. Global events, such as pandemics or geopolitical changes, have shown that flexible adaptation to changes in the supply chains of raw materials and components is necessary.

ChatGPT The global and national increase in interest in electric vehicles is a key factor shaping the development of the electromobility sector and contributes to potential benefits for the Polish economy. The growing demand for electric cars prompts manufacturers to make investments aimed at expanding production capacities and updating their offerings. Electromobility opens up development prospects for new companies. This phenomenon not only affects suppliers of products such as vehicles, components, batteries, or charging stations but also for companies offering various services, such as vehicle servicing.

ChatGPT The ongoing development of electromobility means that an increasing number of entrepreneurs in Poland are faced with the decision to introduce electric vehicles into their corporate fleets. Investing in electric cars brings many benefits, mainly through reducing fleet operating costs. Furthermore, such initiatives enable the fulfillment of a mission related to social responsibility associated with climate and environmental protection. ENGO Cars , as a company committed to a green future, offers a wide range of plug-in hybrid vehicles, combining the advantages of electric vehicles with traditional internal combustion engines.

The dynamic development of the sector, foreign investments, and innovations contribute to Poland’s strong position in the international automotive industry. The coming years will determine whether our country will seize the historic economic opportunity associated with the development of zero-emission transport for the future.

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